Ingeniar and ERN have joined efforts with Global Parametrics to support the first use of the National Disaster Fund (NDF) Technical Assistance Facility from the German Federal Ministry for Economic Cooperation and Development (BMZ), with the development of the first parametric risk transfer solution for urban landslides in Manizales, Colombia
The parametric program will provide another layer of protection alongside pre-existing indemnity policies to assist in immediate recovery efforts in the aftermath of a landslide event in Manizales. This disaster management mechanism is anticipated to cover over 260,000 residents in the city.
For the definition of the trigger of the parametric tool, a unique rainfall-based landslide model will be developed, harnessing rainfall data within Manizales’ network, including historical records and statistics from local stations. From the results of the model, Global Parametrics will structure a parametric risk transfer product. The risk transfer capacity for this solution is anticipated to come from the NDF and international reinsurance and capital markets.
Through initial catalytic investment, solutions will grow and scale, serving to deepen the risk transfer market in developing and emerging economies.
Omar Darío Cardona, CEO of INGENIAR, said “Having detailed inventories of landslides by the City and Corpocaldas, besides records of previous rains for each case, together with a real-time warning system and hazard models makes Manizales an ideal natural laboratory.”
“We are very excited to be able to collaborate in a project with such potential, which can transform the way in which risks are transferred and have an impact on the most vulnerable population. It is of great interest for us to be able to use high quality scientific data with the cooperation of local institutions in Manizales”, stated Mario Ordaz, President of the Board of ERN.
For his part, Héctor Ibarra, CEO of Global Parametrics, stated “We are pleased to work together with ERN and Ingeniar in the development of this type of solutions. We see this as a great opportunity to develop an innovative product that promotes resilience to natural risks and extreme weather events”.
About Global Parametrics:
Rethinking risk to build more inclusive resilience: Extreme weather events and natural hazards are being intensified by climate change, increasing the frequency and intensity of economic shocks which disrupt business and threaten livelihoods.
Established in 2016, Global Parametrics is a specialty provider of parametric solutions for natural hazard and extreme weather risk in emerging economies. Working with the private, public and third sector, GP uses its innovative climatic, seismic and financial risk modelling to rethink resilience for a new era of risk.
